Partners

SEG & Genius Brands (NASDAQ: GNUS)

SEG found Genius Brands (NASDAQ: GNUS) in 2013. The company was under-capitalized and the shares traded by appointment on the OTCBB. The company had a great story but needed help telling it.

Genius creates children “Content with a Purpose,” which is a unique offering, and addresses a massive global audience.


Since 2013, SEG has raised over $120 million for the company (including $58 million registered direct October 2020), guided it through an up-list to Nasdaq in 2016, and provided enough capital for the company to substantially increase its portfolio of animated content.


This strategy of making an early commitment as a principal investor and providing white-glove capital markets advisory service has been utilized with other clients as well.

Timeline

  • 2013

    Andy Heyward takes control of Genius Brands.

  • 2014

    Launches Thomas Edison Secret Labs.

  • 2015

    Launches Kid Genius. Begins development of Llama Llama.

  • 2016

    Begins development of Rainbow Rangers. Partners with Netflix on Llama Llama. Up-list to NASDAQ.

  • 2017

    Mattel signs as master toy partner for Rainbow Rangers. Nickelodeon signs as distribution partner for Rainbow Rangers.

  • 2018

    Llama Llama premiere. Season 2 of Llama Llama green-lit. Rainbow Rangers premieres on Nick Jr.

  • 2019

    Season 2 of Rainbow Rangers green-lit. Global distribution of Rainbow Rangers achieved. Superhero Kindergarten announced.

  • 2020

    Amazon Prime signed to premiere Superhero Kindergarten. Rainbow Rangers toys to debut at Walmart. Cartoon Channel to launch across various streaming services. Announced launch of new animated series starring Shaquille O’Neal.

GNUS Transactions

SEG has raised GNUS almost $120 million since March of 2020

Genius Brands

$58.0 Million

Registered Direct

October 2020

Sole Placement Agent

Genius Brands

$30.0 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$9.0 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$5.5 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$2.8 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$11.0 Million

PIPE

March 2020

Sole Placement Agent

Genius Brands

$2.0 Million

Registered Direct

Febrary 2019

Sole Placement Agent

Genius Brands

$4.5 Million

PIPE

August 2018

Sole Placement Agent

Genius Brands

$4.5 Million

PIPE

August 2018

Sole Placement Agent

Genius Brands

$6.4 Million

Registered Direct

October 2017

Sole Placement Agent

Genius Brands

$4.3 Million

PIPE

October 2015

Sole Placement Agent

Genius Brands

$6.0 Million

PIPE

May 2014

Sole Placement Agent

SEG & Vuzix Corporation (NASDAQ: VUZI)

SEG found Vuzix (NASDAQ: VUZI) in 2013. The challenges VUZI faced were different, including the dual listing of its shares on the OTCBB and the TSX Venture Exchange.

We were attracted to VUZI due to its presence in the
nascent but growing industry of augmented and virtual reality smart glasses.


SEG seeks out companies with disruptive technology who we believe have first-mover advantage in their market. We felt that VUZI enjoyed that distinction when we first met, and feel even more strongly that is the case today.


Since meeting VUZI, SEG has raised the company over $100 million, including $27 million in 2020.

Solution type

M-SERIES Smart Glasses

End market: Enterprise

Market status: Emerging

Projected market opportunity: $10B+

Blade Smart Glasses

End market: Enterprise, Security / 1st Responders, Prosumer

Market status: Emerging

Projected market opportunity: $1B+

OEM Solutions

End market: Custom Projects across multiple industries

Market status: Developing

Projected market opportunity: $100M+

Timeline

  • 2013

    Vuzix Unveils its M100 Smart Glasses at International Consumer Electronics Show

  • Releases the Wrap 1200AR, its Next Generation Digital See-Through AR Eyewear System

  • Meets SEG

  • 2014

    Begins shipment of its Lenovo co-branded M100 Smart Glasses into China

  • 2015

    Up-list to Nasdaq Composite. Receives $24.8M in funding from Intel Corporation

  • 2016

    Begins commercial shipments of the M300

  • 2017

    Vuzix Corporation Completes Transition to Higher Volume Manufacturing Facilities

  • Vuzix Corporation Signs 3-Year Supply Agreement with Toshiba for Custom M300 Smart Glasses Solution

  • 2018

    Launch of Consumer Blade Smart Glasses Commercial Edge Product

  • 2019

    Launch of Consumer Version of the Blade Augmented Reality Smart Glasses

  • Introduction of M400 Smart Glasses

  • 2020

    Introduction of M4000 Smart Glasses for Enterprise

VUZI Transactions

SEG has raised VUZI over $115 million since 2013

Vuzix Corporation

$15.5 Million

Registered Direct

September 2020

Sole Placement Agent

Vuzix

$11.25 Million

Registered Direct

May 2020

Sole Placement Agent

Vuzix

$20 Million

Registered Direct

July 2019

Sole Placement Agent

Vuzix

$30 Million

Registered Direct

January 2018

Co-Placement Agent

Vuzix

$8.6 Million

Registered Direct

December 2017

Co-Placement Agent

Vuzix

$14.5 Million

Registered Direct

December 2016

Sole Placement Agent

Vuzix

$6.6 Million

Registered Direct

July 2016

Sole Placement Agent

Vuzix

$10.0 Million

Up-List Financing

June 2013

Financial Advisor

SEG & 22nd Century Group (NYSE: XXII)

SEG found 22nd Century (NYSE: XXII) in 2011. XXII is another example of a company that was once both under-capitalized and stuck on the OTCBB, where it is very difficult to garner attention from institutional investors.

XXII is a plant biotechnology company that has over 200 patents surrounding the genetic pathway in the tobacco plant that can
up-regulate
or down regulate nicotine production in the tobacco plant. The FDA is interested in this product as they are focused on developing tobacco products with non-addictive levels of nicotine.


SEG was an early backer of XXII, participating in the initial rounds of capital raises. This helped attract other partners in our investor network.


Nine years later, SEG has raised over $125 million for XXII, including a $54 million common stock only deal in October 2017.

Timeline

  • 2011

    XXII meets SEG

  • FDA Clears XXII X-22 IND for Phase II-B Smoking Cessation Clinical Trial

  • 2012

    Announces intent to file Modified Risk Tobacco Product (MRTP) application with the FDA

  • 2013

    British American Tobacco Licenses XXII Technology

  • 2014

    Invests in Anandia Labs. Up-list to NYSE AMEX

  • 2015

    Receives order for nearly five million SPECTRUM US Government Research cigarettes

  • 2016

    Files MRTP application with FDA for lowest nicotine tobacco cigarettes

  • 2017

    FDA grants authorization for XXII to conduct clinical trial studying low tar-to-nicotine ratio cigarettes

  • 2018

    Aurora Cannabis (TSX:ACB) signs a binding term sheet to acquire Anandia Labs from XXII

  • Files pre-market Tobacco Application with the FDA

  • 2019

    FDA accepts and files application for MRTP very low nicotine cigarettes

  • 2020

    XXII presents MRTP to FDA’s Tobacco Product Scientific Advisory Committee

XXII Transactions

SEG has raised XXII over $125 millions since 2011

22nd Century Group

$11 Million

Warrant Exchange

November 2019

Financial Advisor

22nd Century Group

$54 Million

Registered Direct

October 2017

Sole Placement Agent

22nd Century Group

$13 Million

Warrant Exchange

June 2017

Financial Advisor

22nd Century Group

$11.4 Million

Registered Direct

October 2016

Sole Placement Agent

22nd Century Group

$5.0 Million

Registered Direct

July 2016

Sole Placement Agent

22nd Century Group

$5.5 Million

Registered Direct

February 2016

Sole Placement Agent

22nd Century Group

$6.0 Million

Registered Direct

June 2015

Sole Placement Agent

22nd Century Group

$4.3 Million

Registered Direct

September 2014

Sole Placement Agent

22nd Century Group

$13.6 Million

Warrant Exchange

December2013

Financial Advisor

22nd Century Group

$2.5 Million

PIPE

January 2013

Sole Placement Agent

22nd Century Group

$1.0 Million

Warrant Exchange

November 2012

Financial Advisor

22nd Century Group

$1.0 Million

PIPE

May 2012

Sole Placement Agent

SEG 2020 Transactions

Transworld Holdings, Inc.

$2.5 Million

Registered Direct

December 2020

Sole Placement Agent

Oblong, Inc.

$5.0 Million

Registered Direct

December 2020

Sole Placement Agent

Arcimoto, Inc.

$15.25 Million

Registered Direct

November 2020

Sole Placement Agent

Genius Brands

$58 Million

Registered Direct

October 2020

Sole Placement Agent

Oblong, Inc.

$2.85 Million

Registered Direct

October 2020

Sole Placement Agent

Vuzix Corporation

$15.5 Million

Registered Direct

September 2020

Sole Placement Agent

Arcimoto, Inc

$10.0 Million

Registered Direct

July 2020

Sole Placement Agent

Arcimoto, Inc

$8.5 Million

Registered Direct

June 2020

Sole Placement Agent

Social Reality, Inc.

$13.0 Million

Private Placement

June 2020

Sole Placement Agent

BioSig Technologies, Inc.

$17.5 Million

Registered Direct

June 2020

Sole Placement Agent

Arcimoto, Inc.

$8.0 Million

Registered Direct

June 2020

Sole Placement Agent

Genius Brands

$30.0 Million

Registered Direct

May 2020

Sole Placement Agent

Vuzix Corporation

$11.25 Million

Registered Direct

May 2020

Sole Placement Agent

Silo Pharma Inc.

$2.4 Million

Registered Direct

May 2020

Lead Placement Agent

Genius Brands

$11.0 Million

PIPE

March 2020

Sole Placement Agent